RSGT and CMA CGM announce $434 million (SAR 1.6 billion) investment at Jeddah Islamic Port
Strategic partnership expands port capacity and strengthens Saudi Arabia’s role as a global trade and logistics hub.
Red Sea Gateway Terminal (RSGT), Saudi Arabia’s leading port terminal operator, and the CMA CGM Group, a global player in sea, land, air and logistics solutions, yesterday signed definitive agreements for the joint development and operation of Terminal 4 at Jeddah Islamic Port, marking one of the largest foreign direct investments in Saudi Arabia’s maritime sector.
The signing ceremony took place in Paris in the presence of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister of the Kingdom of Saudi Arabia, and Emmanuel Macron, President of the French Republic, underlining the strategic importance of the project to the Kingdom’s National Transport and Logistics Strategy and the ambitions of Vision 2030.
The project represents an investment of approximately $434 million (SAR 1.6 billion) at Jeddah Islamic Port and will create a new state-of-the-art container terminal under RSGT’s existing concession, adding up to 2.6 million TEU of annual handling capacity.
The development will include new deepwater berths designed to accommodate the world’s largest containerships, together with advanced port technologies and 10 new ship-to-shore gantry cranes to improve productivity, efficiency and the reliability of services offered to customers in the Kingdom and across the wider region.
The enhanced maritime infrastructure will enable Jeddah Islamic Port to accommodate large-capacity vessels and major international shipping lines more efficiently, supporting increased trade volumes, stronger global connectivity and more efficient access to international markets for Saudi imports and exports.
The development also strengthens the successful partnership between the Kingdom, represented by the Saudi Ports Authority (Mawani), RSGT and the CMA CGM Group. It demonstrates Saudi Arabia’s continued ability to attract leading international investors to support the growth of its logistics sector and strengthen its position within global trade networks.
The project will provide essential additional capacity to meet the Kingdom’s future trade growth while strengthening the port’s position on major global shipping routes.
The addition of deepwater berths will enable the terminal to efficiently accommodate the next generation of large-capacity containerships, helping to attract and retain major shipping lines, increase cargo flows and improve connections between Saudi businesses and global markets.
This will help strengthen the competitiveness, resilience and efficiency of the Kingdom’s import and export supply chains.
The partnership combines RSGT’s established operational excellence and local expertise with CMA CGM’s global shipping network, logistics capabilities and experience in terminal operations.
Together, the partners will develop world-class infrastructure capable of handling the world’s largest containerships while delivering improved connectivity, greater operational efficiency and enhanced service levels for customers.
The project reflects a long-term commitment to Saudi Arabia’s economic growth, trade competitiveness and transformation of its logistics sector.
Port terminals are an essential link in global supply chains, connecting maritime transport with inland logistics networks and enabling the efficient movement of goods between production centres and consumer markets.
As a global shipping and logistics player, CMA CGM has made port activities a strategic component of its operations, investing in and operating terminals at key gateways along major international trade routes.
With a presence in 64 port terminals worldwide, the Group continues to develop its portfolio to improve operational efficiency, strengthen supply-chain resilience and provide customers with greater connectivity across its global network.
Against this background, H.E. Eng. Suliman bin Khalid Al-Mazrou, President of the Saudi Ports Authority, said the agreement represents a major milestone, demonstrating the Kingdom’s attractiveness for maritime-sector investment and growing confidence among international investors in Saudi Arabia’s port ecosystem.
He added that the project builds on Mawani’s continuing efforts to develop port infrastructure and strengthen its competitiveness, contributing to the objectives of the National Transport and Logistics Strategy in line with Saudi Vision 2030.
Aamer Abdullah Alireza, Executive Chairman of RSGT, said: “This partnership represents a major milestone for both RSGT and the Saudi maritime sector. It demonstrates the Kingdom’s ability to attract leading international investors and reflects growing confidence in Saudi Arabia’s economic future, its logistics ambitions and its strategic position at the heart of global trade.
“Together with CMA CGM, we are investing in infrastructure that will create long-term value, strengthen national competitiveness and support the Kingdom’s transformation into a leading global logistics hub.”
Rodolphe Saadé, Chairman and CEO of the CMA CGM Group, said: “As global trade continues to evolve and infrastructure needs to expand and modernise, terminals are becoming increasingly strategic assets, essential to securing our operations, strengthening major trade corridors and providing greater reliability for our customers.
“Today, together with RSGT, we are taking another major step forward in Jeddah with a state-of-the-art terminal designed to accommodate the world’s largest containerships and equipped with the most advanced technologies.
“This investment demonstrates our long-term commitment to Saudi Arabia and our determination to continue supporting the Kingdom in strengthening its position as a leading global trade and logistics hub.”